News
Luxembourg Rail Protocol in new UK Railways Bill
The UK government announced this week the publication of a Railways Bill setting out the future of the rail sector in the UK. Included in the draft legislation is a provision (S. 86) authorising the UK government to move forward with the ratification of the Luxembourg Rail Protocol to the Cape Town Convention. This will make it easier and cheaper in the future for the private sector to finance new and used railway rolling stock, of all types, in the UK. In announcing the legislation, the UK Government stated that it “remains committed to ratifying the new protocol, given the clear benefits to unlocking greater private sector financing of rolling stock, securing inward investment and promoting UK rail.”
Welcoming this development, RWG Chairman Howard Rosen said “It is exciting news that the UK is continuing to move forward with the adoption of the Luxembourg Rail Protocol”. He added “The Protocol gives new rights for secured lenders and lessors financing rolling stock, which will not only help UK manufacturers, operators and financiers in the UK rail sector, and help provide better value for money for the customers, but open the way for the UK financial services community to participate in the common global security system envisaged by the Protocol”.
Ola Ogun, Chief Financial and Operating Officer at Rail Delivery Group said: “We welcome the inclusion of the Luxembourg Rail Protocol in the Railways Bill as a positive step towards unlocking investment and reducing overall costs in Britain’s rail sector. By making it easier and more cost-effective to finance rolling stock, this measure will deliver better value for taxpayers and improve services for passengers. This reflects our ambition to drive economic growth and deliver for customers.”
RWG UK Contact Group Chair, Martin Fleetwood, commented “By moving to adopt the Luxembourg Rail Protocol, the UK Government is showing that it is open for business on a global scale and that rail reform in the UK should not be seen as a barrier to investment in the UK’s rail sector. It should also bring benefit to the UK’s rolling stock manufacturers and London’s financial centre as more countries around the world begin to adopt the Luxembourg Rail Protocol and open up their own rail markets to new investment”.
Paul Hirst, Global Transport Sector Lead at law firm Addleshaw Goddard added: ” It is great to see the UK take the opportunity afforded by the Railways Bill to give effect to the Luxembourg Rail Protocol. A clear and inexpensive way to attract private sector finance into the market at a pivotal time for rolling stock procurement in the UK as the rail reform programme accelerates and GBR’s functions and duties in this context take shape.”
For the complete report click here.
NOTES FOR EDITORS
The Luxembourg Rail Protocol to the Cape Town Convention on International Interests in Mobile Equipment is a new global treaty under the auspices of UNIDROIT, the International Institute for the Unification of Private Law. The Protocol will make it much easier and cheaper for the private sector to finance all types of railway rolling stock. It sets up a new system for recognition, priorities and enforcement of creditor and lessor rights, which will be registered in an international registry based in Luxembourg, accessible to everyone over the internet 24/7 and introduces, for the first time a new global unique permanent identification system (URVIS) for rolling stock. The United Nations has now adopted global Model Rules setting out minimum standards for the permanent marking of railway rolling stock with URVIS numbers. The Protocol entered into force in contracting states on 8th March 2024.
The European Union (in respect of its competences). Gabon, Luxembourg, Paraguay, South Africa, Spain, and Sweden have ratified the Protocol. France, Germany, Switzerland, Mozambique, Italy, and the UK have already signed the Protocol and are working towards its adoption. Many other states, including Saudi Arabia, the Democratic Republic of Congo, Kenya, Malta, Eswatini, Namibia, Zimbabwe, Ethiopia and Mauritius, are actively looking at ratification of the Protocol. The Protocol is endorsed by many international rail organisations (including the African Rail Industry Association, OTIF, CIT, UIC, UIP, ERFA, ALLRAIL, UITP, CER and Eurofima) and actively supported by the African Union, the UN Economic Commission for Africa and the UN Economic Commission for Europe.
The Rail Working Group is a Swiss-based not-for-profit association focused on the adoption and implementation of the Luxembourg Rail Protocol. It has about 90 direct members and hundreds of additional rail stakeholders represented indirectly by various industry organisations that belong to, and support the objectives of, the RWG.
For more on the Luxembourg Rail Protocol and the Rail Working Group visit www.railworkinggroup.org.
Further information from the Rail Working Group:
Tel. +41 41 760 28 88
WhatsApp +41 79 340 21 53
Email LinkedIn Africa Contact Europe Contact
